Mobile Payments Startup ZooZ Debuts In-Ad Payments (Yes, “Ad” Not “App”)

Posted: May 15, 2013 in Advertising, Apps, GT, Mobile, Startup
Tags: , , , , , ,

20130515-231503.jpg
Fresh off its $2 million in Series A funding, in-app
mobile payments platform ZooZ is announcing a new
product today: in-ad payments. Yes, that’s right, “ad”
not “app.” The big idea here is to streamline the
checkout process for consumers by addressing some
of the challenges with e-commerce on mobile’s small screen, and now connecting that process to mobile
banner ads to increase click-to-buy conversions. With in-ad payments, mobile users will be able
checkout by tapping once on a visible banner ad
within a mobile app, which then launches ZooZ’s
checkout flow. As with ZooZ’s previously launched in-
app payments product, the fully native checkout
experience here doesn’t require the end user to re- enter their credit card or payment details after their
initial sign-up. For those unfamiliar with ZooZ, the company has
been focused on rethinking e-commerce on mobile,
with a checkout process that’s designed to reduce
cart abandonment. As CEO Oren Levy explained to
us last summer, when announcing a partnership
with MobiCart, “despite the fact that there’s a lot of m- commerce going on, there’s a lack of uniformity in
checkout schemes. Each app creates it own
checkout, its own colors and you don’t know how
secure it is.” The first time a user checks out on mobile using
ZooZ, they will have to provide their credit card or
other payment details (e.g. PayPal, Dwolla, etc.) in a
mobile-optimized screen. But afterwards, all
subsequent checkouts become one-tap payments. At
that point, instead of entering in payment information again, ZooZ simply presents you with an interface
where you can flip through your saved credit cards
and other payment methods, then tap “pay now” to
complete the process. Today, ZooZ’s in-app payments product has been
adopted by 5,500 mobile developers. The company
offers a ZooZ SDK for developers, which integrates
ZooZ’s checkout into mobile (iOS, Android, or
HTML5) apps, and it works with several app building
platforms, including Appcelerator Titanium, Phone Gap, and Basic4Android. Levy says the idea for in-ad payments came to him
when he was stuck in an airport playing mobile games
and clicking on banner ads within them. “We were seeing a horrible experience where we were
redirected to another webpage and then the whole
process was so cumbersome – very long and
unfriendly, to say the least,” Levy explains. Screens
weren’t optimized for mobile, he says, and you would
have to zoom in on the forms provided. “Then, when we started exploring this world a little bit,
we found that conversion rates from banner ads were
so low, there was a need for a quicker and easier way
to purchase items from banner ads – whether that’s
physical goods, services, or coupons, etc.,” he adds. So the team decided to take their core technology,
and make it work with the banner ad medium, too. The newly launching ZooZ in-ad payments solution is
not being aimed at developers, but rather at ad
agencies who will bundle the ZooZ in-ad SDK into
their own. Two big-name ad agency brands are
currently testing the in-ad payments SDK, but Levy
says he’s not able to disclose those by name at this time. He expects the SDK to exit from beta in a couple of
months’ time, however, at which point there will
hopefully be room to discuss who’s involved in more
detail. As with ZooZ’s in-app payments platform, the
company charges a processing fee or per transaction
fee to generate revenue. Fees vary depending on the
type of merchant. When offering the full payment
processing solution to indie app developers, the
company charges 2.8% + $0.19, but when partnering with payment processors where ZooZ only operates
as a technological layer on top of the payment
processing, it charges different flat fees per
transactions. The company, now with $3.5 million in total funding,
has seen most of its adoption to date in European
markets, but is now starting to see some traction in
the U.S. and parts of Asia. In Europe, ZooZ has
found a niche within last-minute hotel booking apps,
Levy notes (e.g. HotelTonight competitors), while in Asia, Japan is its key market. The company is now
thinking about expanding further into that country by
opening an office there. ZooZ’s new in-ad payments option is not available
publicly today, but can be requested by interested
agencies for testing purposes by contacting the
company via email or phone.

Advertisements
Comments
  1. […] Mobile Payments Startup ZooZ Debuts In-Ad Payments (Yes, “Ad” Not “App”). […]

  2. rachat mobile

    In the future, the internet, the mobile will really take a leading position, I find that to keep in mind a good operation of the devices to be a minimum guarantee and think of elementary actions such as the recycling part of the base

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s